[Udo]

I agree and would take it even further to say that drawing a line in the sand based on personal convictions is almost always a good choice.

> Walking out may feel good, as righteous indignation so often does, but it doesn’t help your situation

I think that walking out of these situations is not so much a sign of giving in to righteous indignation but more of a way to abort a situation that has already become unsalvageable. In this case, the prospective employer making demands like these is in itself a glaring signal that you don't want to work at this place. Continuing to sit at their table after voicing your disagreement in the absolutely ridiculous "hope" of getting a job offer is not only a waste of time for both sides, it's a surefire way to be humiliated. Might as well leave while you still have the high ground.

Back in the day when I was occasionally interviewing people for positions I came across utterly incompatible applicants quite often, and sometimes those interviews were extremely uncomfortable for both parties. Actually, I wished more people walked out of my interviews when I myself could not.

[ktizo]

Tell them they have failed the interview process and should not contact you again for a second attempt should the position to employ you come round again.

And then walk out.